LLC Questions from a new notary

Hello all, I am a fairly new notary and NSA, and I’m looking into making an LLC.
One youtube video said to wait until you’re making six figures to declare an LLC… I’ve only just started so that number is not in my immediate future.

My question is, if making an LLC allows you to deduct business expenses, what is the advantage of waiting?

When would you recommend starting your LLC? (or S-Corp, I’m still not sure which is the best fit for me so I’m looking into my options here)

I would love to hear what works for you (or, alternatively, what you’ve tried that doesn’t work!)

Thanks for your help,

Lauren

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You need to consult an accountant - either a CPA or an Enrolled Agent - see if your circumstances warrant you forming an LLC.

BTW - I am a sole prop (no LLC or corp) - and I can deduct my business expenses - you don’t have to have an LLC or corp to do that

Awesome news that you can still deduct some expenses as a Sole Proprietor! Do you happen to know if there’s a significant difference in how many expenses you can deduct?

I’m no tax expert or accountant (instant disclaimer here… :slight_smile: ) but

When I filed I claimed all my expenses - they were, after all, business expenses. Just keep good records so you can prove a business expense.

In California business deductions were supposed to be limited to $5000yr and there was a calculator on the IRS website for estimating total amount allowed for business deductions. But I have seen larger amounts allowed and automatically carried forward to credit future years, once limits are reached.

Turbo Tax Software is the best in my opinion with Audit Defense Feature and it carries credits forward and auto populates information as well., i have used their software for over 20 years without a single issue, I have used their software for LLC, S Corp, Sole Proprietorship & Individual Returns without a hitch

I deduct my expenses and am not an LLC. I’m considering it, but so far the favorable aspects do not outweigh the time and cost involved.

Kidd Notary Services has been open for 12 years, offering signing agent services as well as general/mobile for the last 7 years.

I file as a sole proprietor.

I AM NOT AN ACCOUNTANT. This just works for me.

I would speak to an attorney, but becoming an LLC no matter what you earn offers protection against someone coming after your personal assets in case of a lawsuit. I’m just starting out and I have already set up as LLC taxed as S-Corp for that very reason.

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Hi,

1.) Research on YouTube or Google

GOTO: Legal Zoom.com

  A.) Notary - LLC.
        Small Business Start Ups:
        —Startup Cost Worksheet
        
        Local State — Business License

        Taxes - IRS.gov
        EIN - Employee Identification no (use this instead of ss#)

        Local Bank — Setup Small business banking
         Or
         Use PayPal Business —>> Business Account

         Vista Print.com —->>> Business Cards
         
         Google —->>> Business Account:
         
        
        Research:  Accounting & bookkeeping
        Find a good CPA in your area

         Watch video:
      =========> copy n paste into search —>> YouTube
          Top 5 Write-offs for New Business Owners

          https://youtu.be/WCJrlx_w-dY

^^^^^^^^^^^^^^copy the above link^^^^^^^^^^^^^

********Before you spend any money!!!

        Please Research and find a good Business Mentor
        Take “Small business course”

Good Luck!

Hey! Ok first you need to get with an attorney or cpa to find out what works best for your situation. I’m not an attorney/cpa but I am a notary tax preparer and because now we are friends (wink) lol I’ll share some information with you.

First you can choose to be a sole proprietor or choose to be a single member LLC. There are pros and cons to each. Sole proprietorship is the easiest one, you can still deduct your expenses and your notarial acts that are exempt from self employment tax. The con is that you are responsible for all of the liability. That is the same with a DBA. A DBA stands for doing business as, all it does is give you a name if you don’t wanna use your own name and it only works county wise. so I’m here in San Antonio Texas and bexar county registers DBAs for 10 years (last I checked) which means you need to re apply.

If you were an LLC there is a certain level of liability protection. There is no income requirement to do an LLC. I wasn’t even a loan signing agent yet when I registered for my LLC, maybe I was too excited I don’t know lol

Now a scorp is different, that is not a legal entity that is a tax structure. There are certain requirements you to have before you elect to be an s corp. A S-corp gives you the ability to save money on taxes by not having to pay self employment taxes on your profits but you have to pay yourself a reasonable salary. if you don’t know what a reasonable is for what you do and in your area your going to have to do the research. for example you can not be a doctor and pay yourself mcdonald’s cashier salary. so you want to be making some kind of consistent money ,not only that but s corp tax deadlines are different from everyone else and you have to fill out different paperwork and you have to put yourself on payroll. I know this because I myself am a single member LLC taxed as an S corp. I hope this helps. if you have any questions feel free to reach out. talking about it is way better than typing lol

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